Dare to be Different.... - Thursday, page-2

Short Covering. Wed. Evening Liqueurs. 13 Jan. 2016.

XJO up strongly +1.26% after a lack lustre morning. At 11.00 a.m. Summer Time, the XJO was up only about 10 points. It finished the day up more than sixty points. It seems that the shorters had a meeting around 10.30 and decided that they'd made enought profit and they didn't want their tails burnt, so they closed their shorts (bought stocks) and the XJO headed higher.



Well - yeah - looking at the chart - is that anything to get excited about?

Maybe. It more or less replicates the three day reversal pattern emerging in last night's DAX chart.

This has a long way to go yet in order to prove its credentials, but a move above that important horizontal resistance level (in blue) would consolidate a view that this Index is going higher.

Miners continue to be the bane of the Australian stock market. Here's today's Sector performance chart:



Gold Miners were smacked down more than -4%. That in itself is a good pointer that the recent fall is over. The safe-haven of Gold is being deserted.

But, more dependent on fundamentals than the Goldies, the Mines and Metals Index was down -0.9% in a strong market. We need to see strength in both the Miners and the Financials to be confident of a strong Ozzie market.

The Financials (X-Property) duly delivered today off the support of their uptrending channel.



This looks like its easier than shooting ducks in a barrel. I wish it was always so bereft of risk.
But this chart is looking good for a lot more upside.

Here's the Metals and Mining Chart:


It is very oversold and a hang-man candlestick at the lower end of a trend. It's just possible that we'll see a reversal to the upside here.

If we do - we might see a move up in both Financials and Miners. That should give a good old kick-along for the XJO.

Shorters - be afraid - very afraid.

RB.